For even more artificial intelligence (AI) chipmaker exposure outside of Nvidia and Advanced Micro Devices, Cathie Wood just added Cerebras Systems (NASDAQ: CBRS) into the Ark Invest universe.

Cerebras, known for its large chips the size of a dinner plate, had its initial public offering (IPO) on May 14. Wood quickly added shares to both the Ark Innovation ETF and Ark Next Generation Internet ETF on the day of the IPO.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

While Cerebras' public debut offers investors more variety in the AI chip space, it doesn't automatically mean investors should follow Ark's latest moves.

What's attracting so many investors

Cerebras' value proposition over other chipmakers is the size of its chips. Instead of relying on clusters of multiple smaller chips, it created a single large chip that allows for faster speeds. The company says speeds are up to 15 times faster than graphics processing units, the standard hardware used to train and run AI models.

Its approach is winning over many high-profile names in the tech world. In January, it signed a multiyear deal valued at more than $20 billion with OpenAI, and it has partnerships with both Meta Platforms and Amazon through Amazon Web Services.

Over the last several years, its approach has also helped revenue skyrocket:

• 2022 revenue: $24.6 million

• 2023 revenue: $78.7 million

• 2024 revenue: $290.3 million

• 2025 revenue: $510 million

The Cerebras IPO sizzled for insiders

The initial range for the IPO was expected to be between $115 and $125, but the final price exceeded expectations at $185. It then opened to the public at $350 per share on May 11, before closing on the day just slightly above $311.

That was a sizzling IPO, but it's not the average retail investor who benefited. The insiders who invested early and watched their shares jump from $185 to $311 were the ones who benefited on paper. Anyone who bought in at that $350 price is down, also on paper, with shares closing at $236 at the end of May.

This short window of price history doesn't make Cerebras a bad investment, nor does it make Wood wrong about the potential long-term value of the stock by including it in her exchange-traded funds. She is known for wanting to get ahead of trends early, and Cerebras challenging the traditional chip industry fits perfectly with the types of companies Ark typically looks for.